1.1                          A bill for an act 
  1.2             relating to education finance; increasing the funding 
  1.3             for debt service equalization aid; lowering the 
  1.4             property tax levy for new school buildings; 
  1.5             appropriating money; amending Minnesota Statutes 2000, 
  1.6             sections 123B.53, subdivisions 4 and 5; and 123B.54. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2000, section 123B.53, 
  1.9   subdivision 4, is amended to read: 
  1.10     Subd. 4.  [DEBT SERVICE EQUALIZATION REVENUE.] The debt 
  1.11  service equalization revenue of a district equals the eligible 
  1.12  debt service revenue minus the amount raised by a levy of 12 ten 
  1.13  percent times the adjusted net tax capacity of the district. 
  1.14     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
  1.15  fiscal year 2002 and later. 
  1.16     Sec. 2.  Minnesota Statutes 2000, section 123B.53, 
  1.17  subdivision 5, is amended to read: 
  1.18     Subd. 5.  [EQUALIZED DEBT SERVICE LEVY.] To obtain debt 
  1.19  service equalization revenue, a district must levy an amount not 
  1.20  to exceed the district's debt service equalization revenue times 
  1.21  the lesser of one or the ratio of: 
  1.22     (1) the quotient derived by dividing the adjusted net tax 
  1.23  capacity of the district for the year before the year the levy 
  1.24  is certified by the adjusted pupil units in the district for the 
  1.25  school year ending in the year prior to the year the levy is 
  1.26  certified; to 
  2.1      (2) $4,000 $6,000. 
  2.2      <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
  2.3   fiscal year 2002 and later. 
  2.4      Sec. 3.  Minnesota Statutes 2000, section 123B.54, is 
  2.5   amended to read: 
  2.6      123B.54 [DEBT SERVICE APPROPRIATION.] 
  2.7      (a) $33,141,000 in fiscal year 2000, $29,400,000 in fiscal 
  2.8   year 2001, $26,934,000 in fiscal year 2002, and 
  2.9   $24,540,000 $57,000,000 in fiscal year 2003 and each year 
  2.10  thereafter is appropriated from the general fund to the 
  2.11  commissioner of children, families, and learning for payment of 
  2.12  debt service equalization aid under section 123B.53.  
  2.13     (b) The appropriations in paragraph (a) must be reduced by 
  2.14  the amount of any money specifically appropriated for the same 
  2.15  purpose in any year from any state fund. 
  2.16     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
  2.17  fiscal year 2002 and later.